What is a Business Line of Credit?

A business line of credit is a revolving financing facility that gives your company access to funds up to an approved limit. You borrow only what you need, when you need it, and you pay interest only on the outstanding balance. As you repay, funds become available to draw again during the term, making this product ideal for managing cyclical expenses, seasonal inventory, and short-term capital needs.

Who Should Consider This Product?

Old National Bank’s line of credit is tailored for a wide range of businesses, including:

• Small and medium-sized enterprises seeking flexible working capital.
• Established companies looking to smooth cash flow between receivables and payables.
• Businesses that require funds for inventory buildup, seasonal demand, or unexpected expenses.
• Entrepreneurs who want a standby facility to seize timely opportunities like bulk purchases or project bidding.

Key Benefits

• Flexibility: Draw funds as needed and repay on a schedule that matches your cash flow.
• Cost Efficiency: Interest is charged only on the amount you use, helping to control borrowing costs.
• Speed: Quick access to capital reduces the time spent on reactive financing solutions.
• Improved Cash Flow Management: Smooth out timing gaps between revenue receipt and expense payments without disrupting operations.
• Revolving Access: Once approved, you can reuse the credit up to your limit, avoiding repeated loan applications.
• Competitive Rates and Terms: Tailored credit limits and competitive interest rates designed to support growth and stability.

How It Works

After credit approval, your business receives a maximum borrowing limit. You access funds through checks, online transfers, or other convenient methods offered by Old National Bank. Repayment structures vary—monthly interest-only payments with a principal repayment at maturity, or principal and interest amortization—based on the agreed terms. As you pay down balances, the available credit replenishes, allowing for ongoing flexibility.

Common Uses

Business lines of credit are well-suited to a variety of short- to medium-term needs, including:

• Purchasing inventory or raw materials to meet seasonal demand.
• Financing payroll during slow revenue months.
• Bridging gaps between accounts receivable and payable.
• Covering emergency repairs or unexpected expenses.
• Funding marketing campaigns or short-term growth initiatives.

Features and Flexible Terms

Old National Bank structures business lines of credit to suit many operational models. Typical features may include:

• Variable or fixed interest rates tied to market indexes or bank benchmarks.
• Customizable credit limits based on creditworthiness, cash flow, and collateral.
• Short- and long-term renewal options to align with your business plan.
• Optional collateral arrangements, such as accounts receivable or inventory, to support higher limits.
• Streamlined online and mobile banking access for managing draws, repayments, and statements.

Eligibility and Documentation

Eligibility for a line of credit is based on the bank’s assessment of your business’s financial strength, credit history, and cash flow. Typical documentation may include:

• Business financial statements, including balance sheets and profit & loss statements.
• Bank account statements and tax returns.
• Business plan or projections for newer companies.
• Personal guarantees or collateral documentation when applicable.

Old National Bank’s relationship managers work with applicants to clarify requirements and recommend the structure that best fits their operational needs.

Risk Management and Responsible Borrowing

Using a line of credit responsibly means aligning borrowing with predictable cash flows and strategic planning. Businesses should monitor utilization, maintain adequate reserves, and ensure timely repayments to preserve credit availability and minimize interest expense. Old National Bank offers advisory support to help clients manage borrowing efficiently and understand the implications of different repayment schedules and collateral arrangements.

Why Choose Old National Bank?

Old National Bank combines local decision-making with broad financial expertise. Clients benefit from:

• Personalized service from experienced business bankers.
• Solutions designed for regional market dynamics and industry needs.
• Seamless integration with other banking products and treasury services.
• Commitment to transparency and clear terms to help entrepreneurs and business leaders plan with confidence.

Frequently Asked Questions

How quickly can I access funds after approval?

Once the line is approved and documentation is complete, funds can typically be accessed quickly through the bank’s established channels.

Can my credit limit change over time?

Yes. As your business grows or financial conditions change, Old National Bank can review and adjust credit limits based on updated financials and performance.

Is collateral always required?

Not always. Collateral requirements depend on credit profile, requested limit, and risk assessment. Unsecured lines may be available for qualified borrowers, while higher limits often require collateral.